A cash crisis is natural at some point in life. There are downs alongside the ups of life and even the most strategic people can find themselves in financial crunch at times. Reasons vary from expensive medical treatment, excessive bills at once, impulsive shopping, accidents, heightened expenses all of a sudden, outstanding debts and so on. However, that does not have to be the end of the world for you. If you can be planned in your approach, you can soon beat the crisis blue and get back to your usual sound life. The post below offers 4 expert tips to handle the crunch successfully.
1. Budgeting is vital
According to market reports, 20 percent of people suffering from financial crisis have admitted to not having a proper budgeting plan as the main reason for the cash crunch. Remember, irrespective of your income, if you proceed with a planned mindset, you can avoid the pitfalls of financial crisis. So, the first thing you have to do is to chart out a budget. Make 4 lists- one for your total income every month, the second for necessary unavoidable expenses, the third for savings and 4th your marginal areas that you can do away with. Stop subscription for those magazines that you get but hardly read, streamline the cable bill by cutting off the extra channels which you don’t watch that often & you can also reduce 3-4 dinner outings to once a month till the crisis is over. Stick to the budget religiously.
2. Follow list while shopping
As per the studies, 28 percent of people down with cash crunch have confessed that it’s their impulsive splurges that are largely responsible for the crisis. Well, you can avoid this by shopping with a list. It’s not uncommon to end up buying 5 items when you headed to the store for just one given the lure of window shopping. But when you have a list handy, you will always have this mental barrier that will stop you from discarding the list. You must also stop frequent visits to stores as this is another way to abet your impulsive shopping indulgences.
3. Use hard cash mostly
While credit cards have eased the shopping spree today, it’s this very convenience of anytime shopping – even when you are not carrying hard cash- which can trigger a cash crunch at times. This is why, it’s best to stick to hard cash as much as possible and use the credit cards only for the most planned big purchases. If you can get into the practice of using hard cash most of the times, it will help you to check your impulsive shopping habits when you are not carrying enough cash.
4. Loan consolidation
As mentioned earlier, high debts with staggering interest rates is one of the main reasons behind cash crunch at times. If you find yourself in such a situation, take to a loan consolidation solution that would accumulate all your debts in one debt with much lower interest rate- making the affair more manageable for you.
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